Richard Russell editor of the “Dow Theory Letters” was interviewed on King World News about the state of the stock markets and begged his subscribers to be OUT of stocks. As the steady deterioration of the markets internals are being masked by the MSM, he reckons at some stage in the near future this will caused the DOW to buckle.

The aftermath of debt bubbles, when they burst, is measured, not in years, but in decades. I’ve said before that my signal for the end of this extended top will be that time when the Dow breaks below 10,000. Once, having violated 10,000, I expect consumers to turn dead-bearish, and I expect the currently optimistic analysts to become pessimistic.

Once again I beseech (beg) my subscribers to be OUT of stocks. The outlook for the markets, all of it, is now very bearish. We are watching the greatest debt bubble in history about to deflate, and it won’t be a pretty sight.

All man-made money is a liability of the creator and I am afraid that. Man-made money is ultimately doomed. Gold will be the last man standing as it has been over thousands of years.

At the start this site I mentioned that already 6.3 trillion dollars have been lost in this early, and I emphasize, early, stage of the bear market. The essence of what I foresee ahead — we are now moving into the second half of one of the greatest bear markets in history. It will not be a time for making money, rather it will be a time for austerity and survival.

As Europe has already embraced austerity, Russell expects the US to follow which will lead ultimately to high unemployment and high inflation.

Europe is already practicing austerity, and shortly I expect the US to follow in its footsteps. One great problem is that the US’s politicians are trying to avoid pain. Austerity means pain, and to reduce our consumption and spending means one thing – taking the pain.

Already the early signs of pain are appearing, and of course what I’m talking about is unemployment well above the present level. During the 1930s unemployment rose to 25%. I think ultimately we will again see unemployment above 25% before this bear market ends.

Signs of inflation are now appearing. Super Bowl ads for this year have already sold out at the price of 4 million per 30 seconds a piece. Starbucks has just raised its prices. The prices of oil, silver and gold have surged higher today — all signs of inflation. Almost all commodities closed higher as well.

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As the EU prepares to ban oil imports from Iran, China is standing by to take up most of the spare capacity. As reported by Reuters today,

M. Qamsari, International Director of the National Iranian Oil Co (NIOC), told Reuters by telephone from Tehran shortly before the report on the EU stance emerged.

“We could very easily replace those customers,” said Qamsari. Some, but not all, of any displaced volume could move into China as well as other Asian countries and Africa, he said. Iran was unlikely just to store crude on tankers as that was only a short-term solution.

So how much goes to the EU.

Roughly 30 percent, or just under 700,000 bpd, of Iran’s oil steams west of Suez, he said. More than half that volume is shipped to Europe, roughly 200,000 bpd goes to Turkey and the remainder is routed into Africa.

The International Energy Agency estimates Iran exports about 450,000 bpd to the European Union.

Who is this really going to hurt? We can see from the statement below the European Consumer will suffer through higher prices. It’s always the people who suffer from these decisions.

The NIOC official said Europe’s longstanding buyers of Iranian crude – among them France’s Total and Italy’s Eni – have voiced concern about potential EU sanctions, but had yet to cut back on contractual supplies.

Any punitive moves by Brussels could cause European consumers to suffer through higher prices at the pump, he said.